Home insurance
Homeowners Insurance Coverage Explained (2026)
Homeowners insurance coverage in plain English: HO-3 vs HO-5, HO-6 and HO-8 forms, Coverages A-F, replacement cost vs ACV, deductibles and exclusions.
Topics
Home insurance
A homeowners policy bundles several coverages into one contract: the house itself, other structures, your belongings, extra living costs and personal liability. These guides walk through each part, the common exclusions such as flood and earthquake, and the questions to ask before you sign.
2 guidesFind your state insurance department ↗FloodSmart (FEMA NFIP) ↗
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Home insuranceDoes Homeowners Insurance Cover Flooding? (2026)
Does homeowners insurance cover flooding or earthquakes? Usually not. How NFIP flood insurance, private flood, CEA policies and sewer backup cover work.
Tools: Home insurance
Insurance calculators and tools →- Actual Cash Value Calculator (Depreciation)Estimate actual cash value with simple depreciation and compare an ACV payout with a replacement cost payout after your deductible.
- Dwelling Coverage Calculator: Estimate Rebuild CostEstimate what it would cost to rebuild your home for homeowners Coverage A, and check whether 10% other structures coverage fits your garage and fence.
- Percentage Deductible Calculator for Hurricane and WindTurn a 1%, 2% or 5% hurricane, wind or earthquake deductible into dollars, see what a claim would pay, and compare it with a flat deductible.
Common questions about home insurance
Is homeowners insurance required by law?
No state law requires it, but nearly every mortgage lender does. If you own your home outright, the choice is yours, though going without coverage puts your largest asset at risk.
Does homeowners insurance cover floods?
Standard homeowners policies do not cover flood damage. Flood coverage is sold separately through the National Flood Insurance Program or private flood insurers, and NFIP policies usually have a 30-day waiting period.
What is the difference between replacement cost and actual cash value?
Replacement cost pays what it costs to repair or replace an item with a similar new one. Actual cash value subtracts depreciation, so you get less for older items. Check which one your policy uses for the house and for belongings.
What is a FAIR plan?
A FAIR plan is a state-backed insurer of last resort for property owners who cannot find coverage in the regular market. Coverage is often more limited, so it is worth checking with your state insurance department about what it includes.
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